Published on April 9th, 2023 | by Daniel Sherman Fernandez0
How Much Money Are You Willing To Lose On Your Tesla
The used asking prices for Tesla models are falling quite fast right now.
It looks like the depreciation on Tesla electric cars are higher than expected and it is not entirely because of Tesla itself.
Confused? Worried? Well, let us explain based on our research. When the grey market importers started importing in new and also used Tesla’s about 2 years ago, there was no baseline in our Malaysian market for selling prices.
This prompted the dealers to put a very high selling price, which meant a huge profit on each Tesla sold. With the Malaysian governments decision to remove all import duties on electric cars, it was a major ‘bonus’ for the many Tesla private importers as there were enough rich and less informed Malaysians who wanted a high technology electric car and they were willing to pay the high asking price.
Meanwhile, none of these Tesla’s had a factory warranty and also factory after sales provided and over the coming months, some had accidents, recalls and even worse, software issues.
Transporting the ‘problem’ Tesla’s to Singapore (where there is an official Tesla dealership) was expensive and also met with rejection by the Tesla Singapore dealership.
Meanwhile, Tesla had already set up office in neighbouring Thailand as well and business was booming with selling prices shared and after a simple conversion was done to Malaysian ringgit (no duties to be added on) it was clear that the Malaysian Tesla importers/dealers had to start reducing their selling prices.
Interestingly, we started seeing a drop in selling prices and there were even ‘free gifts’ and ‘special financing’ being offered to buyers.
Now, there were still enough Malaysians ready to buy a Tesla without factory warranty and after sales, but they had already heard on BFM radio and also read somewhere that NEW Tesla selling prices were much lower In Thailand.
Their prices were actually as follows, the low spec model costs THB1,759,000 (roughly RM222,837) and the top spec model goes for THB2,309,000 (approximately RM292,513) while official AP imported Tesla Model 3 cars at the time in Malaysia started from RM289,000 with the top spec model priced from RM453,528.
So, this is why, today we see so many used and nearly new Tesla electric cars on sale in our local classifieds and values are dropping faster than expected as once Tesla Malaysia opens its doors and starts selling in Malaysia, these used Tesla’s will be worth less than 45 to 35 percent of their original purchase price.